25 July 2025

Leaky Home: Turret Trustees v. Profit

 

It is a pyrrhic victory.  Previous owners sold their Auckland leaky home for $1.01 million before disappearing overseas, leaving Scott Meads family trust holding an $883,000 High Court order for damages, but little chance of full recovery.

The Meads family trust, Turret Trustees Ltd, purchased a Cathedral Place property in Parnell for $1.01 million in 2016.  It is a 1990s monolithic plaster-clad townhouse.

Before settling their purchase, the Meads discovered a new roof had been installed.  There were doubts whether installation required Building Act consent and whether it was code-compliant.

A sum of $175,000 was held back in their lawyer’s trust account until this was sorted out.

After shifting in, the Meads found evidence of ongoing water ingress.  They learnt previous owners Francois Profit and Laure Tsobny had carried out substantial remediation work: replacing rotten timber wall framing and rotting particle flooring; and recoating exterior walls with a further layer of plaster.

The Meads shifted out while repairs were made.

In the High Court, Justice Becroft ruled Mr Profit and Ms Tsobny were in breach of contract.

They signed an agreement for sale and purchase containing a standard clause promising they had obtained any necessary building consents for work done.

Evidence was given that the extent of remedial work they carried out did require consent.

Justice Becroft awarded damages for breach of contract totalling $883,000: including $800,000 for the cost of bringing the property up to consented standard; $53,000 for rent lost to the family trust whilst the Meads moved out; and $30,000 general damages for stress, anxiety and inconvenience.

He ordered that the $175,000 still held in a lawyer’s trust account, plus accrued interest, be handed over to the Meads’ family trust in part payment.

Mr Profit and Ms Tsobny did not defend the claim.  Recovery of the balance from them may prove difficult, Justice Becroft said.  Ms Tsobny has returned to Cameroon.  Mr Profit is believed to be in France.

Turret Trustees Ltd v. Profit – High Court (25.07.25)

25.168